Stock to Buy: Jewellery Stock With 46% Upside Potential

Synopsis:- A leading jewellery retailer has received a ‘Buy’ rating with a ₹635 target, implying 46% upside from ₹436. Backed by an omnichannel model, plans to scale to 700 stores, 58% repeat revenue, and 27% Q3 growth, the company shows improving profitability and strong expansion visibility.

India’s gems, jewellery, and watches sector thrives as a key economic driver, blending craftsmanship with rising global demand. In H1 FY2026 (Apr-Sep 2025), gems and jewellery exports hit $14.1 billion, up 3.66% YoY, fueled by 22% gold jewellery growth. The watches market stands at $4.62 billion in 2026, growing at 10.23% CAGR amid smartwatch trends. This sector employs millions, showcasing resilience despite global challenges.

With a market capitalisation of Rs 6,618.69 crore, the shares of BlueStone Jewellery and Lifestyle Ltd were trading at Rs 436.00 per share, decreasing around 2 percent as compared to the previous closing of Rs 444.90 apiece.

BOB Capital Markets has issued a ‘Buy’ recommendation on the jewellery stock, setting a target price of  Rs 635. This implies a potential upside of 46% from the current level of  Rs 436. The call reflects the brokerage’s confidence in the company’s growth prospects, improving margins, and expanding retail presence.

Rational

As per the brokerage, BLUESTON’s omnichannel strategy addresses structural gaps in jewellery conversion rates. Online conversions remained low at 0.1–0.2%, far below other e-commerce categories, due to the need for trust, physical verification, resizing, and service assurance. This led to its shift from a pure online model to offline expansion starting FY18.

The company sees strong scalability in its store model, targeting nearly 700 stores with around 20% annual expansion. Mature stores are expected to generate ₹120–140 million revenue with healthy margins and nearly 40% store-level ROCE. Management highlighted balanced capital allocation, comfortable leverage, and steady internal accruals to fund expansion.

Repeat revenue remains solid at 58%, supported by savings schemes contributing about 20% of sales. The brokerage noted that cohort tracking provides better insight than headline repeat ratios, as new customer additions affect blended numbers. Affordable entry-level pricing continues to drive acquisition and long-term customer value creation.

The company delivered strong financial improvement in Q3FY26, with revenue rising 27% year-on-year to ₹748 crore from ₹587 crore. More importantly, it reported a sharp turnaround in profitability, moving from a net loss of ₹27 crore to a profit of ₹71 crore, reflecting better operational performance and improved cost efficiency.

BlueStone Jewellery and Lifestyle Ltd is a modern Indian jewellery retailer blending online convenience with an expanding physical presence. The company offers a wide range of gold, diamond, and gemstone jewellery, focusing on design, trust, and customer experience. It aims to capitalise on shifting consumer preferences by integrating digital engagement with showroom accessibility.

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